BILL NUMBER: AB 1244	CHAPTERED  10/10/99

	CHAPTER   817
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 8, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 7, 1999
	PASSED THE SENATE   SEPTEMBER 2, 1999
	AMENDED IN SENATE   AUGUST 31, 1999
	AMENDED IN SENATE   AUGUST 26, 1999
	AMENDED IN SENATE   JULY 1, 1999
	AMENDED IN ASSEMBLY   APRIL 26, 1999
	AMENDED IN ASSEMBLY   APRIL 6, 1999

INTRODUCED BY   Assembly Member Olberg
   (Principal coauthor:  Assembly Member Machado)

                        FEBRUARY 26, 1999

   An act to amend Sections 14550, 14560.5, 14561, and 14581 of, and
to repeal and add Sections 14549.1 and 14575 of, the Public Resources
Code, relating to beverage containers, and making an appropriation
therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1244, Olberg.  Beverage containers.
   (1) The existing California Beverage Container Recycling and
Litter Reduction Act requires a distributor of specified beverage
containers to pay a redemption payment of 2
to the Department of Conservation, for each beverage container, as
defined, sold or transferred, for deposit in the California Beverage
Container Recycling Fund and provides for an increase in that
payment, as specified.  The money in the fund is continuously
appropriated to the department to pay refund values, processing
payments, and for other purposes.  a   A violation of the act is a
crime and the penalties for violations of the act are deposited in
the fund.
   Under the act, the department is required to calculate a
processing fee for each beverage container with a specified scrap
value, which is required to be paid by beverage manufacturers for
each beverage container sold or transferred to a dealer.  Until
January 1, 2000, a processing fee is required to be imposed annually
only if the scrap value for the material is less than the cost of
recycling, and, after that date, a processing fee is required to be
established pursuant to different criteria.  Under the law in effect
until January 1, 2000, the processing fee is reduced in an amount
equal to 25% of the redemption payments projected to be paid by
distributors of beverages sold in that container type for the
previous calendar year.
   This bill would revise the method of calculating the processing
payment and would require the processing payment to equal the
difference between the scrap value offered to recyclers by willing
purchasers and the cost of recycling containers and a reasonable
financial return.  The bill would require the department to establish
a processing fee on January 1, 2000, and on and before January 1
annually thereafter, and to use specified cost data for the January
1, 2000, and January 1, 2001, processing payment calculation.  The
bill would require the actual processing fee to equal 65% of the
processing payment, but the department would be required to adjust
the amount of the processing fee, based upon the availability of
funds in the processing fee account for that beverage material type
so the amount of the processing fee equals 25% of the processing
payment.
   (2) Existing law requires the department to transfer an amount
equal to 25% of the redemption payments, and all processing fees,
made for glass, PET, and bimetal beverage containers to,
respectively, the Glass Processing Fee Account, the PET Processing
Fee Account, and the Bimetal Processing Fee Account, for making
processing payments for, and reducing processing fees paid for, these
container types.  After setting aside funds needed for the payment
to refund values and administrative fees, and for these expenditures,
the department is authorized to expend $18,500,000 of the moneys in
the fund, until January 1, 2001, for the payment of handling fees,
and $5,000,000, for payments for curbside programs, until January 1,
2001, to expend $7,000,000 annually for grants to community
conservation corps, and to expend $2,000,000 for grants to nonprofit
organizations or government programs.
   This bill would increase these amounts to $23,500,000 for the
payment of handling fees, $15,000,000 for payment for curbside
programs and neighborhood dropoff programs, and $15,000,000 for
grants to community conservation corps.  The bill would authorize the
expenditure of $10,500,000 annually for payments to cities and
counties for beverage container recycling and litter cleanup
activities, and $500,000 for grants for beverage recycling and litter
reduction programs, and would require the payment of $6,840,000 to
the City of San Diego, for a curbside recycling pilot program that
would be terminated on January 1, 2004.  The bill would extend the
authorization to expend these funds for handling fees and for
curbside programs indefinitely, thereby making an appropriation.  The
bill would authorize the department to pay each curbside recycling
program a quality glass incentive payment for color-sorted glass
collected by the curbside recycling program, in a total of not more
than $3,000,000 per calendar year and would specify the criteria for
the making of these payments.
   (3) The bill would require the department to contract with the
University of California to prepare and submit a specified report.
   (4) The changes proposed by the bill would become operative only
if SB 332 of the 1999-2000 Regular Session of the Legislature is
enacted and becomes effective on or before January 1, 2000.  The bill
would also make a statement of legislative intent regarding the
order of enactment of this bill and SB 332.
  (5) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   Since a violation of the requirements imposed by the bill would be
a crime, the bill would impose a state-mandated local program by
creating new crimes.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 14549.1 of the Public Resources Code, as
proposed to be added by Senate Bill 332, is repealed.
  SEC. 2.  Section 14549.1 is added to the Public Resources Code, to
read:
   14549.1.  In order to improve the quality and marketability of
glass containers collected for recycling by curbside recycling
programs, the department may, consistent with Section 14581 and
subject to the availability of funds, pay a quality glass incentive
payment to curbside recycling programs.  The total amount shall not
exceed three million dollars ($3,000,000) per calendar year.  The
department shall make a quality glass incentive payment based on all
of the following:
   (a) The amount of the quality glass incentive payment shall be up
to twenty-five dollars ($25) per ton, as determined by the
department.
   (b) The department shall make a quality glass incentive payment
only for color-sorted glass beverage containers that are
substantially free of contamination.
   (c) The department shall make a quality glass incentive payment
only for glass beverage containers that are either collected color
sorted by curbside recycling programs, or collected commingled by
curbside recycling programs and subsequently color sorted by the
collector or the operator of a materials recovery facility.
   (d) Only one payment shall be made for each color-sorted glass
beverage container collected.
  SEC. 3.  Section 14550 of the Public Resources Code is amended to
read:
   14550.  (a) (1) Every processor shall report to the department for
each month the amount of empty beverage containers, by material type
and weight of container or material, excluding refillable beverage
containers, received from recycling centers and curbside programs for
recycling, and the scrap value paid for glass, PET, and bimetal
containers and any beverage container that is assessed a processing
fee.  Every processor shall also report to the department for each
month the amount of other postfilled aluminum, glass, and plastic
food and drink packaging materials sold filled to consumers in this
state and returned for recycling.  These reports shall be submitted
within 10 days after each month, in the form and manner that the
department may prescribe.
   (2) The department shall treat all information reported pursuant
to this section by a processor as commercial or financial information
subject to the procedures established pursuant to Section 14554.
   (b) Every distributor who sells or offers for sale in this state
beverages in aluminum beverage containers, nonaluminum metal beverage
containers, glass beverage containers, plastic beverage containers,
or other beverage containers, including refillable beverage
containers of these types, shall report to the department for each
month the number of beverages sold in these beverage containers in
this state which are labeled pursuant to Section 14561, by material
type and size and weight of container or any other method as the
department may prescribe.  These reports shall be submitted by the
day when payment is due, consistent with the applicable payment
schedule specified in subdivision (a) of Section 14574, in the form
and manner which the department may prescribe.
   (c) Every distributor who sells or offers for sale in this state
beverages in refillable beverage containers and who pays a refund
value to distributors, dealers, or consumers who return these
containers for refilling, shall report to the department for each
month the number of these beverage containers returned empty to be
refilled, by material type and size of container or any other method
which the department may prescribe.  These reports shall be submitted
by the day when payment is due, consistent with the schedule
specified in subdivision (a) of Section 14574, in the form and manner
which the department may prescribe.
   (d) Notwithstanding subdivision (b), a distributor who elects to
make an annual payment pursuant to subdivision (b) of Section 14574
may, upon the approval of the department, submit the reports required
by this section annually to the department.  The reports shall
accompany the annual payment submitted pursuant to Section 14574.
  SEC. 4.  Section 14560.5 of the Public Resources Code is amended to
read:
   14560.5.  (a) (1) The invoice or other form of accounting of the
transaction submitted by a beverage distributor of soft drinks or
mineral water to a dealer shall separately identify the amount of any
redemption payment imposed on beverage containers pursuant to
Section 14560 and the separate identification of the invoice or other
form of accounting of the transaction shall not combine or include
the gross wholesale price with the redemption payment but shall
separately state the gross amount of the redemption payment for each
type of container included in each delivery.
   (2) The invoice or other form of accounting of the transaction
submitted by any distributor of beer and malt beverages or wine or
distilled spirit coolers to a dealer may separately identify the
portion of the gross wholesale price attributable to any redemption
payment imposed on beverage containers pursuant to Section 14560 and
the separate identification of the invoice or other form of
accounting of the transaction may separately state the gross amount
of the redemption payment for each type of container included in each
delivery.  The invoice or other form of accounting of this
transaction may separately identify the portion of the gross
wholesale price attributable to the redemption payment.
   (3) Notwithstanding Section 14541, the department shall randomly
inspect beverage distributor invoices or other forms of accounting to
ensure compliance with this subdivision.  However, an unintentional
error in addition or subtraction on an invoice or other form of
accounting by a route driver of a distributor shall not be deemed a
violation of this subdivision.
   (4) For the purposes of this subdivision, the term "type of
container" includes the amount of the redemption payment on
containers under 24 ounces and on containers 24 ounces or more.
   (b) To the extent technically and economically feasible, a dealer
may separately identify the amount of any redemption payment on the
customer cash register receipt provided to the consumer, by the
dealer, that is applied to the purchase of a beverage container.
   (c) (1) A dealer shall separately identify the amount of any
redemption payment imposed on a beverage container in all advertising
of beverage products and on the shelf labels of the dealer's
establishment.  The separate identification shall be accomplished by
stating one of the following:
   (A) The price of the beverage product plus a descriptive term, as
described in paragraph (2).
   (B) The price of the beverage product plus the amount of the
applicable redemption payment and a descriptive term, as described in
paragraph (2).
   (C) The price of the beverage product plus the amount of the
applicable redemption payment, a descriptive term, as described in
paragraph (2), and the total of these two amounts.
   (2) For purposes of paragraph (1), the redemption payment shall be
identified by one of the following descriptive terms:  "California
Redemption Value," "CA Redemption Value," "CRV," "California Cash
Refund," "CA Cash Refund," or any other message specified in Section
14561.
   (3) A dealer shall not include the redemption payment in the total
price of a beverage container in any advertising or on the shelf of
the dealer's establishment.
   (4) This subdivision applies only to a dealer at a dealer location
with a sales and storage area totaling more than 4,000 square feet.

   (5) The penalties specified in Sections 14591 and 14591.1 shall
not be applied to a person who violates this subdivision.
   (d) With regard to the sale of beer and other malt beverages or
wine and distilled spirits cooler beverages, any amount of redemption
payment imposed by this division is subject to Section 25509 of the
Business and Professions Code.
  SEC. 5.  Section 14561 of the Public Resources Code is amended to
read:
   14561.  (a) (1) A beverage manufacturer shall clearly indicate on
every beverage container sold or offered for sale by that beverage
manufacturer in this state the message "CA Redemption Value" or
"California Redemption Value," by either printing or embossing the
beverage container or by securely affixing a clear and prominent
stamp, label, or other device to the beverage container.
   (2) A beverage manufacturer may affix the message "CA Cash Refund"
or "California Cash Refund" on a beverage container sold or offered
for sale by the beverage manufacturer, instead of the message
specified in paragraph (1), but the message shall be affixed in the
manner prescribed in paragraph (1).
   (b) Any refillable beverage container sold or offered for sale is
exempt from this section.  However, any beverage manufacturer or
container manufacturer may place upon, or affix to, a refillable
beverage container, any message that the manufacturer determines to
be appropriate relating to the refund value of the beverage
container.
   (c) No person shall offer to sell, or sell to a consumer a
beverage container subject to subdivision (a) that has not been
labeled pursuant to this section, except for a refillable beverage
container that is exempt from labeling pursuant to subdivision (b).
   (d) The department may require that any beverage container
intended for sale in this state be printed, embossed, stamped,
labeled, or otherwise marked with a universal product code or similar
machine-readable indicia.
   (e) Any beverage container labeled with the message specified in
subdivision (a) shall have the minimum redemption payment established
pursuant to Section 14560, which shall be paid by the distributor to
the department pursuant to Section 14574.
   (f) To the extent not otherwise authorized by this section, a
glass beverage container containing noncarbonated fruit drinks that
contain any percentage of fruit juice, made subject to this division
pursuant to this act amending this section during the 1999 portion of
the 1999-2000 Regular Session, may comply with the requirements of
this section by embossing the container with the message described in
paragraph (1) or (2) of subdivision (a).
   (g) Notwithstanding any other requirement of this section, any
beverage container that is included within the scope of this division
on January 1, 2000, but that was not subject to this division before
that date, shall be exempt from the labeling requirements of this
section until January 1, 2001.  However, even though these beverage
containers are not required to bear the message required by this
section from January 1, 2000, to January 1, 2001, inclusive,
notwithstanding subdivision (c) of Section 14512, they shall be
considered "empty beverage containers" for all of the purposes of
this division during that period of time.
  SEC. 6.  Section 14575 of the Public Resources Code, as proposed to
be added by Senate Bill 332, is repealed.
  SEC. 7.  Section 14575 is added to the Public Resources Code, to
read:
   14575.  (a) If any type of empty beverage container with a refund
value established pursuant to Section 14560 has a scrap value less
than the cost of recycling, the department shall, on January 1, 2000,
and on or before January 1 annually thereafter, establish a
processing fee and a processing payment for the container, by the
type of the material of the container.
   (b) The processing payment shall be at least equal to the
difference between the scrap value offered to a statistically
significant sample of recyclers by willing purchasers, and except for
the initial calculation made pursuant to subdivision (d), the sum of
both of the following:
   (1) The actual cost for certified recycling centers, excluding
centers receiving a handling fee, of receiving, handling, storing,
transporting, and maintaining equipment for each container sold for
recycling or, only if the container is not recyclable, the actual
cost of disposal, calculated pursuant to subdivision (c).  The
department shall determine the statewide weighted average cost to
recycle each beverage container type, which shall serve as the actual
recycling costs for purposes of paragraphs (3) and (4) of
subdivision (c), by conducting a survey of the costs of a
statistically significant sample of certified recycling centers,
excluding those recycling centers receiving a handling fee, for
receiving, handling, storing, transporting, and maintaining
equipment.
   (2) A reasonable financial return for recycling centers.
   (c) The department shall base the processing payment pursuant to
this section upon all of the following:
   (1) Except as specified in paragraph (2), the department shall use
the average scrap values paid to recyclers between October 1, 1998,
and September 30, 1999, for the initial calculation and the same
12-month period directly preceding the year in which the processing
fee is calculated for any subsequent calculation.
   (2)  For material types not included in the program on January 1,
1999, the department shall estimate the scrap value for the initial
calculation based on a sample of average scrap values paid to
recyclers between July 1, 1999, and September 30, 1999.
   (3) Except as specified in subdivision (d), the department shall
use the actual recycling costs for certified recycling centers, as
determined pursuant to paragraph (1) of subdivision (b) by the
department on or before January 1, 2000, for the initial calculation.

   (4) The department shall make all subsequent determinations of the
actual costs for certified recycling centers, pursuant to paragraph
(1) of subdivision (b), on before January 1, 2001, and every third
year thereafter.
   (d) Except as provided in subparagraph (B) of paragraph (4), the
department shall use the following cost data for certified recycling
centers for the January 1, 2000, calculation:
   (1) Eighty-five dollars and nineteen cents ($85.19) for each ton
of glass containers.
   (2) Four hundred seventeen dollars and ninety-six cents ($417.96)
for each ton of bimetal containers.
   (3) Six hundred forty-two dollars and sixty-nine cents ($642.69)
for each ton of PET plastic containers.
   (4) (A) Six hundred forty-two dollars and sixty-nine cents
($642.69) for each ton of non-PET plastic containers.
   (B) Notwithstanding this subdivision, in calculating the January
1, 2001, processing payment for non-PET plastic containers, the
department shall also use the same cost data specified in
subparagraph (A).
   (e) Except as specified in subdivision (f), the actual processing
fee paid by beverage manufacturers shall equal 65 percent of the
processing payment calculated pursuant to subdivision (b).
   (f) The department, consistent with Section 14581 and subject to
the availability of funds, shall reduce the processing fee paid by
beverage manufacturers pursuant to subdivision (e) by expending funds
in each material processing fee account, established pursuant to
subparagraph (A) of paragraph (6) of subdivision (a) of Section
14581, so that the amount of the processing fee equals 25 percent of
the processing payment calculated pursuant to subdivision (b).
   (g) Prior to January 1, 2001, the department may adjust a
processing fee established pursuant to this section for any plastic
beverage container, if both of the following occur:
   (1) The department determines that the average statewide scrap
values paid by willing purchasers for that beverage container
materials type are less than the average scrap values used as the
basis for the processing fee calculation.
   (2) The department determines that adjusting the processing fee is
necessary to further the objectives of this division.
   (h) (1) Except as provided in paragraphs (2) and (3), every
beverage manufacturer shall pay to the department the applicable
processing fee for each container sold or transferred to a
distributor or dealer within 40 days of the sale in the form and in
the manner which the department may prescribe.
   (2) (A) Notwithstanding Section 14506, with respect to the payment
of processing fees for beer and other malt beverages manufactured
outside the state, the beverage manufacturer shall be deemed to be
the person or entity named on the certificate of compliance issued
pursuant to Section 23671 of the Business and Professions Code.  If
the department is unable to collect the processing fee from the
person or entity named on the certificate of compliance, the
department shall give written notice by certified mail to that person
or entity.  The notice shall state that the processing fee shall be
remitted in full within 30 days of issuance of the notice or the
person or entity shall not be permitted to offer that beverage brand
for sale within the state.  If the person or entity fails to remit
the processing fee within 30 days of issuance of the notice, the
department shall notify the Department of Alcoholic Beverage Control
that the certificate holder has failed to comply, and the Department
of Alcoholic Beverage Control shall prohibit the offering or sale of
that beverage brand within the state.
   (B) The department shall enter into a contract with the Department
of Alcoholic Beverage Control, pursuant to Section 14536.5,
concerning the implementation of this paragraph, which shall include
a provision reimbursing the Department of Alcoholic Beverage Control
for its costs incurred in implementing this paragraph.
   (3) (A) Notwithstanding paragraph (1), a beverage manufacturer
may, upon the approval of the department, elect to make a single
annual payment of processing fees, if the beverage manufacturer's
projected processing fees for a calendar year total less than one
thousand dollars ($1,000).
   (B) An annual processing fee payment made pursuant to this
paragraph is due and payable on or before February 1 for every
beverage container sold or transferred by the beverage manufacturer
to a distributor or dealer in the previous calendar year.
   (C) A beverage manufacturer shall notify the department of its
intent to make an annual processing fee payment pursuant to this
paragraph on or before January 31 of the calendar year preceding the
year in which the payment will be due.
   (4) The department shall pay the processing payments on redeemed
containers to processors, in the same manner as it pays refund values
pursuant to Sections 14573 and 14573.5.  The processor shall pay the
recycling center the entire processing payment representing the
actual cost and financial return incurred by the recycling center, as
specified in subdivision (a).
   (i) When assessing processing fees pursuant to subdivision (a),
the department shall assess the processing fee on each container
sold, as provided in subdivision (e), by the type of material of the
container.
   (j) The container manufacturer, or a designated agent, shall pay
to, or credit, the account of the beverage manufacturer in an amount
equal to the processing fee.
   (k) The department shall annually, on or before January 1,
determine the statewide average scrap values paid to recyclers by
processors for beverage containers during the 12-month period ending
September 30.  If the department determines that the statewide
average scrap values paid for glass containers is 10 percent or more
above or below the previous year's scrap value, the department shall
adjust the processing payment to equal the difference between the
cost of recycling and the new statewide average scrap value.
  SEC. 8.  Section 14581 of the Public Resources Code is amended to
read:
   14581.  (a) Subject to the availability of funds, and pursuant to
subdivision (c), the department shall expend the money set aside in
the fund, pursuant to subdivision (c) of Section 14580 for the
purposes of this section:
   (1) Twenty-three million five hundred thousand dollars
($23,500,00) shall be expended annually for the payment of handling
fees required pursuant to Section 14585.
   (2) Fifteen million dollars ($15,000,000) shall be expended
annually for payments for curbside programs and neighborhood dropoff
programs pursuant to Section 14549.6.
   (3) (A) Fifteen million dollars ($15,000,000), plus the
proportional share of the cost-of-living adjustment, as provided in
subdivision (b), shall be expended annually in the form of grants for
beverage container litter reduction programs and recycling programs
issued to either of the following:
   (i) Certified community conservation corps, that were in existence
on September 30, 1999, or that are formed subsequent to that date,
that are designated by a city or a city and county to perform litter
abatement, recycling, and related activities, if the city or the city
and county has a population, as determined by the most recent
census, of more than 250,000 persons.
   (ii) Community conservation corps, that are designated by a county
to perform litter abatement, recycling, and related activities, and
are certified by the California Conservation Corps as having operated
for a minimum of two years and as meeting all other criteria of
Section 14507.5.
   (B) Any grants provided pursuant to this paragraph shall not
comprise more than 75 percent of the annual budget of a community
conservation corps.
   (4) (A) Ten million five hundred thousand dollars ($10,500,000)
may be expended annually for payments of five thousand dollars
($5,000) to cities and ten thousand dollars ($10,000) for payments to
counties for beverage container recycling and litter cleanup
activities, or the department may calculate the payments to counties
and cities on a per capita basis, and may pay whichever amount is
greater, for those activities.
   (B) Eligible activities for the use of these funds may include,
but are not necessarily limited to, support for new or existing
curbside recycling programs, neighborhood dropoff recycling programs,
public education promoting beverage container recycling, litter
prevention, and cleanup, cooperative regional efforts among two or
more cities or counties, or both, or other beverage container
recycling programs.
   (C) These funds may not be used for activities unrelated to
beverage container recycling or litter reduction.
   (D) To receive these funds, a city, county, or city and county
shall fill out and return a funding request form to the Department of
Conservation.  The form shall specify the beverage container
recycling or litter reduction activities for which the funds will be
used.
   (E) The Department of Conservation shall annually prepare and
distribute a funding request form to each city, county, or city and
county.  The form shall specify the amount of beverage container
recycling and litter cleanup funds for which the jurisdiction is
eligible.  The form shall not exceed one double-sided page in length,
and may be submitted electronically.  If a city, county, or city and
county does not return the funding request form within 90 days of
receipt of the form from the department, the city, county, or city
and county is not eligible to receive the funds for that funding
cycle.
   (F) For the purposes of this paragraph, per capita population
shall be based on the population of the incorporated area of a city
or city and county and the unincorporated area of a county.  The
department may withhold payment to any city, county, or city and
county that has prohibited the siting of a supermarket site, caused a
supermarket site to close its business, or adopted a land use policy
that restricts or prohibits the siting of a supermarket site within
its jurisdiction.
   (5) (A) Five hundred thousand dollars ($500,000) may be expended
annually in the form of grants for beverage container recycling and
litter reduction programs.
   (B) Up to a total of six million eight hundred forty thousand
dollars ($6,840,000) shall be paid to the City of San Diego, between
January 1, 2000, and January 1, 2004, for a curbside recycling
program conducted pursuant to Section 14549.7.
   (6) (A) The department shall expend the amount necessary to pay
the processing payment established pursuant to subdivision (b) of
Section 14575.  The department shall establish separate processing
fee accounts in the fund for each beverage container material type
for which a processing payment and processing fee is calculated
pursuant to Section 14575, into which account shall be deposited both
of the following:
   (i) All amounts paid as processing fees for each beverage
container material type pursuant to subdivision (g) of Section 14575.

   (ii) Funds equal to pay 75 percent of the processing payments
established in subdivision (b) of Section 14575, in order to reduce
the processing fee to the level provided in subdivision (f) of
Section 14575.
   (B) Notwithstanding Section 13340 of the Government Code, the
money in each processing fee account is hereby continuously
appropriated to the department for expenditure without regard to
fiscal year, for purposes of making processing payments, and reducing
processing fees, pursuant to Section 14575.
   (7) (A) Up to ten million dollars ($10,000,000) shall be expended
by the department between January 1, 2000, and January 1, 2002, for
the purposes of undertaking a statewide public education and
information campaign aimed at promoting increased recycling of
beverage containers.
   (B) Notwithstanding Section 7550.5 of the Government Code, on or
before January 1, 2002, the department shall provide a report to the
Legislature on the impact of the statewide public education and
information campaign and make recommendations for any future
campaigns.
   (8) Up to three million dollars ($3,000,000) shall be expended
annually for the payment of quality glass incentive payments pursuant
to Section 14549.1.
   (9) (A) Three hundred thousand dollars ($300,000) shall be
expended annually by the department, until January 1, 2003, pursuant
to a cooperative agreement entered into between the department and
Keep California Beautiful, a nonprofit 501(c)(3) organization
chartered by the State of California in 1990, for the purpose of
conducting statewide public education campaigns aimed at preventing
and cleaning up beverage containers and related litter.  The
campaigns shall include, but not be limited to, coordination of Keep
California Beautiful month.
   (B) Prior to making an expenditure pursuant to this paragraph, the
department shall enter into a cooperative agreement with Keep
California Beautiful.
   (C) As part of the cooperative agreement, Keep California
Beautiful shall provide the department with an annual campaign plan
and budget, and a report of previous year campaign activities.
                                                         (D) On or
before July 1, 2002, the department shall make a recommendation to
the Legislature on future funding for beverage container litter
prevention and cleanup activities by Keep California Beautiful.
   (b) The fifteen million dollars ($15,000,000) that is set aside
pursuant to paragraph (3) of subdivision (a), is a base amount that
the department shall adjust annually to reflect any increases or
decreases in the cost of living, as measured by the Department of
Labor, or a successor agency, of the federal government.
   (c) (1) The department shall review all funds on a quarterly basis
to ensure that there are adequate funds to make the payments
specified in this section and the processing fee reductions required
pursuant to Section 14575.
   (2) If the department determines, pursuant to a review made
pursuant to paragraph (1), that there may be inadequate funds to pay
the payments required by this section and the processing fee
reductions required pursuant to Section 14575, the department shall
immediately notify the appropriate policy and fiscal committees of
the Legislature regarding the inadequacy.
   (3) On or before 180 days after the notice is sent pursuant to
paragraph (2), the department may reduce or eliminate expenditures,
or both, from the funds as necessary, according to the procedure set
forth in subdivision (d).
   (d) If the department determines that there are insufficient funds
to make the payments specified pursuant to this section and Section
14575, the department shall reduce all payments proportionally.
   (e) Prior to making an expenditure pursuant to paragraph (7) of
subdivision (a), the department shall convene an advisory committee
consisting of representatives of the beverage industry, beverage
container manufacturers, environmental organizations, the recycling
industry, nonprofit organizations, and retailers, to advise the
department on the most cost-effective and efficient method of the
expenditure of the funds for that education and information campaign.

  SEC. 9.  Notwithstanding Section 7550.5 of the Government Code, the
Department of Conservation, using funds from the California Beverage
Container Recycling Fund, shall contract with the University of
California for preparation and submittal to the department, on or
before January 1, 2002, of a study that the department shall transmit
to the Governor and the Legislature on or before that date, that
does all of the following:
   (a) Reviews whether the inclusion of plastic beverage containers
made of resins other than polyethelene terathate has substantially
increased the recycling rate of those containers.
   (b) Compares the recycling rates for like types of beverage
containers covered by the California Beverage Container Recycling and
Litter Reduction Act with like types of beverage containers not
covered by the act.
   (c) Compares the net cost of recycling containers covered by the
act at recycling centers, supermarket sites, and curbside recycling
programs, and estimates the cost of collection and disposal of those
containers not covered by the act and not recycled.
   (d) Compares the economic benefit and impact on the state's
economy of the act with an "Oregon style" nickel deposit law, and
with the situation if the act were repealed.
   (e) Reports the scope of curbside recycling in California, along
with an evaluation of the benefits and cost impact of the act on
curbside recycling programs.
   (f) Recommends any modifications to the act, including, but not
limited to, the fiscal and recycling impact of repealing the act; the
fiscal and recycling impact of expanding the act; and any products
or materials that should be included or excluded from the coverage of
the act.
  SEC. 10.  The Legislature finds and declares that the changes made
in this bill to Sections 14550, 14560.5, 14561, and 14581 of the
Public Resources Code incorporate the amendments to those sections by
SB 332, and make additional changes, and it is the intent of the
Legislature that this bill be enacted after SB 332.  It is further
the intent of the Legislature that if this bill is enacted after SB
332, Section 2 of the bill, which adds Section 14549.1 to the Public
Resources Code, and Section 7 of this bill, which adds Section 14575
to the Public Resources Code, shall both take effect, and Sections
14549.1 and 14575 of the Public Resources Code, as proposed to be
added by SB 332, shall not become operative.
  SEC. 11.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
  SEC. 12.  This act shall only become operative if Senate Bill 332
of the 1999-2000 Regular Session of the Legislature is enacted and
becomes effective on or before January 1, 2000.
